The emergence of a double top pattern amidst a general market decline indicates a potential further decrease in Solana's price.

In the current market situation, Solana, a layer 1 cryptocurrency, is facing challenges maintaining its value above $205. After being rejected twice in less than a month, a double-top pattern has formed. This pattern, which arises following a prolonged period of price growth, suggests that holders of SOL may encounter a substantial correction in the near future.

Solana (SOL) Price Analysis: Recent Developments and Liquidations

Since the end of January, Solana (SOL) has surged by 166%, reaching a peak of $210, its highest point in over two years. However, its momentum slowed down as it struggled to break past this resistance level due to market consolidation.

On April 1st, SOL experienced a second reversal from the $205 resistance, leading to a 12% decline to $179.8. This drop resulted in the liquidation of $20 million worth of Long positions, as reported by Coinglass, a derivative market monitoring platform.

Solana (SOL) Weekly Chart Analysis: Possibility of a Bullish Reversal

Analyzing the weekly chart reveals that SOL is forming a significant rounding bottom pattern, commonly considered a strong signal of a trend reversal. This pattern indicates that the downtrend might be reaching its conclusion, potentially signaling the beginning of an upward trend.

With continuous buying pressure, SOL has the potential to rise up to $260. This target aligns with the strength of the rounding bottom pattern, suggesting substantial buying support.

Key Technical Indicators

• Exponential Moving Average (EMA): The slopes of the 20-day and 50-day EMA are critical support levels for buyers during market corrections, offering important pullback zones.
• Directional Movement Index (DMI): The DI+ (blue) and DI- (orange) trends are displaying indications of a potential bearish crossover, hinting at the development of a corrective trend in this altcoin.

Note: This article is for informational purposes only and should not be construed as legal, tax, investment, financial, or any other form of advice.